UK interest rates: Bank now offers over 5% for savers
UK banks are now offering savers more than 5 per cent interest rates following pressure to pass on the rising base rate
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UK banks are now offering savers more than 5 per cent interest rates following pressure to pass on the rising base rate.
New data has revealed that British banks have passed on more of the benefits of interest rate rises to savers than other financial institutions in the US and Europe.
Statistics from the rating agency S&P found UK high street banks have passed on the rises more effectively than lenders in other countries.
Some of Britain's biggest lenders have passed on 43 per cent of the benefits to their customers.
New data has revealed that British banks have passed on more of the benefits of interest rate rises to savers than other financial institutions in the US and Europe
PexelsIn comparison, US banks passed on only 25 per cent of the interest rate rises since it began increasing them in March 2022 to April this year.
While Europe has been passing on just a small portion to savers with 20 per cent on average.
in Ireland, Slovenia and Spain only 7 and 8 per cent, respectively, were given to their customers.
As the Bank of England continues to bump up interest rates in a bid to curb inflation, bank bosses have been accused of benefiting from this by increasing their profits from the difference between the rate they pay savers and what they charge people for their mortgages.
Those not passing on rates to savers but still passing them on to mortgage holders, were told off by MPs.
UK savers are now being offered better deals, with returns of up to 6.1 per cent.
However, no rates yet beat inflation at 7.9 per cent as experts advise it is a good time to tie up money for longer with a fixed-rate account.
“Inflation is a moving number and the Government is committed to reducing it to 5.3 per cent so if you believe they can, now is potentially a rare time when savers could lock in to real terms rate gains after inflation is taken in to account," James Blower, founder of Savings Guru told iNews.
UK savers are now being offered better deals, with returns of up to 6.1 per cent
Pexels
Savers hoping to take advantage of the high-return account should act soon due to the deals being pulled after an average of 27 days, down from 34 days in June.
The savings accounts currently offering 5 per cent and over fixed for one year include: Tandem Bank – 6.15 per cent, FirstSave – 6.10 per cent, OakNorth Bank – 6.05 per cent, Atom Bank – 6.05 per cent, Ford Money – 6.05 per cent, Hampshire Trust Bank – 6.03 per cent, Monument Bank – 6.03 per cent, Kent Reliance – 6.01 per cent and OakNorth Bank – 6.00 per cent.
While the best two year fixed deals include: FirstSave – 6.15 per cent, Hampshire Trust Bank – 6.05 per cent, Atom Bank – 6.05 per cent, Ford Money – 6.05 per cent, Ikano Bank – 6.05 per cent, Kent Reliance – 6.05 per cent, OakNorth Bank – 6.00 per cent, Beehive Money – 6.00 per cent, RCI Bank – 6.00 per cent and Aldermore – 6.00 per cent.
And three year deals include: RCI Bank – 6.00 per cent, OakNorth Bank – 5.96 per cent, Hampshire Trust Bank – 5.95 per cent, Ikano Bank – 5.95 per cent, Cynergy Bank – 5.95 per cent, FirstSave – 5.95 per cent, Close Brothers Savings – 5.95 per cent, United Trust Bank – 5.90 per cent, Tandem Bank – 5.85 per cent and Recognise Bank – 5.85 per cent.